What are Special Designated Areas (SDAs)?
Malta has several Special Designated Areas (SDAs), which the Maltese government has designated to promote investment and economic activity. These areas offer several benefits to investors, including purchasing property without needing an Acquisition of Immovable Property (AIP) permit. This is similar to acquisition rights granted to Maltese citizens. Once purchased, property owners may also freely lease or rent the property.
This makes Malta an attractive destination for foreign investors looking to purchase property there. Many Special Designated Areas are located around Malta, each offering unique benefits and investment opportunities.
Why Malta?
The Maltese archipelago is in the heart of the Mediterranean and has been a popular tourist destination for two decades. The country’s favourable tax structure, reduced red tape, increased accessibility and regulatory development draw in EU nationals and expatriates worldwide. The booming real estate sector here mainly attracts high-net-worth individuals.
The Maltese market has earned a reputation for its stable return on investment, secure environment, and high quality of life. Foreigners looking to reside in the country can benefit from Malta’s legal system, including no tax on ownership or wealth.
Read more: What is it like living in Malta?
In this regard, there are Special Designated Areas (SDAs) in Malta, where no distinction applies between Maltese and non-Maltese citizens.
Special Designated Areas in Malta
Properties in SDAs intend to provide their residents with luxurious amenities, such as marinas, spas, swimming pools, shopping malls, supermarkets and restaurants. Explore the following Special Designated Areas in Malta:
- Fort Chambray, Għajnsielem, Gozo
- Portomaso Development, Spinola, St. Julian’s, Malta
- Cottonera Development
- Manoel Island/Tignè Point, Gżira and Sliema, Malta
- Tas-Sellum Residence (Mellieħa Project)
- Madliena Village Complex
- SmartCity
- Fort Cambridge Zone, Tignè
- Ta’ Monita Residence, Marsascala
- Pender Plance and Mercury House site
- Kempinski Residences, San Lawrenz, Gozo
- Metropolis Plaza, Gżira
- Portomaso Extension I, St. Julian’s
- Pender Place and Mercury House site, Extensions I, II, III, IV and V, St. Julian’s
- Visa Point, Marsalforn, Gozo
- Quad Business Towers, Mrieħel
- Southridge, Mellieħa
- Mistra Heights
- Quad Business Towers, Mrieħel, Extension I
- Verdala Terraces
- Pender Place and Mercury House Zone, Extension VI, St. Julian’s
Apart from the absence of distinction between EU and non-EU nationals and the freedom, investors can maximise other benefits when buying a property in Malta’s Special Designated Areas.
Benefits of Buying a Property in Special Designated Areas in Malta
Buying a property in Malta can be an excellent investment. Whether the properties are for residence or rental, investors can leverage all the following benefits:
1. No Permits Required for Buying Property in SDAs
As mentioned above, purchasing a property in Special Designated Areas does not require an AIP permit. It’s possible irrespective of the buyer’s nationality.
Following the Maltese laws, properties outside the SDA require the buyer to get an AIP permit. Take note that properties acquired under an AIP permit cannot be sublet. Learn more about the process and costs of buying a property in Malta.
Understand the various requirements for the acquisition of immovable property in Malta, according to Chapter 246 of the Laws of Malta or the Immovable Property (Acquisition by Non-Residents) Act:
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Maltese and EU Citizens – both with five years continuous residence in Malta |
Maltese and EU Citizens – without five years continuous residence in Malta |
Non-Maltese and Non-EU citizens |
|
|
Primary Residence |
No restrictions – No need to apply |
No restrictions – No need to apply |
Prior authorisation is required* |
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Secondary Residence or any other immovable property |
No restrictions – No need to apply |
Prior authorisation is required* |
Prior authorisation is required* |
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Property in a Special Designated Area |
No prior authorisation |
No prior authorisation or predefined limit |
No prior authorisation or predefined limit |
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Immovable Property required for the person’s business activities or supply of services by such person |
No prior authorisation or predefined limit |
No prior authorisation or predefined limit |
No permit granted unless required for an industrial or touristic project or as a contributor to the development of the economy of Malta |
*Buyers must obtain an AIP permit
Please note that buyers will not be granted an AIP permit if they have already purchased an immovable property in Malta. Special Designated Areas, however, are exemptions.
2. Opportunity of renting property in SDAs
When a property is acquired through an AIP permit in Malta, there are certain restrictions on renting it out. However, buyers may freely lease or rent out if the property is in a Special Designated Area. It is an opportunity to enjoy rental income and capital growth. Renting out a property in Malta is taxed at 15%.
3. Access to residency and citizenship programmes
Malta offers several residency programmes like the Malta Permanent Residency Programme (MPRP) and the Malta Global Residence Program (MGRP). An investor must meet specific eligibility criteria, one of which is to acquire or lease a property in Malta of a particular value. Since the property value in the SDAs is high, investors can apply with their acquired property.
Download our guide and get a deeper look at the MPRP.
The same applies to Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment applicants. Buying a property in an SDA in Malta also helps investors qualify for the programme, offering a Maltese passport and citizenship.